The Taiwan dollar firmed sharply on Friday, rebounding from a 2-1/2-month low, as the central bank sold US dollars and some banks took profits in the US currency in the non-deliverable forwards market.
The Taiwan dollar ended at T$32.931 to the US dollar, up sharply from its previous close of T$33.128, with the central bank seen actively selling US dollars before the market close. The local currency opened at T$33.095.
On Thursday the Taiwan dollar weakened to a 2-1/2 month intraday low, despite central bank intervention to curb losses after domestic stocks fell sharply. Duann Jin-sheng, the central bank's forex chief, told reporters that the Taiwan dollar rose sharply during the session as funds unloaded their overseas investments due to the global market slump and brought money back to Taiwan. Some investors also converted their foreign exchange deposits to Taiwan dollars, pushing up the local currency, Duann said.
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